Central city businesses are bracing themselves for losses in income and jobs as the next stage of Tauranga's Southern Pipeline works contract approaches the CBD.

Works on the Southern Pipeline in Memorial Park.

Tauranga central city businesses stand to lose between $17m and $40m in income during the Devonport Road pipeline construction period, and more than 200 jobs.

The figures, which are contained in a report into the project's impact, are formulated by Dr Warren Hughes of the Waikato University's department of economics.

The study was first presented at an Environment Court hearing in 2008, where Mainstreet Tauranga retailers argued for the waterfront route instead of laying the pipeline along Devonport Road.

The issue resurfaced at the recent Tauranga City Council monitoring committee meeting where the Mainstreet report stated the project is still a major concern because of the lack of access, traffic delays and other factors.

In reply to a question from Councillor Larry Baldock, Mainstreet manager Kirby Weis says the damage will still be done even with the pipeline stopping at Elizabeth Street or 1st Avenue.

'It depends which way it's going to go across the harbour,” says Kirby.

'At the moment it's probably stopping at 1st Ave, because if they are going to do a submersion pipe they will have to lay it out along 1st Ave.”

At the time of the report, there were 1500 cars travelling along Devonport Road every hour, says Kirby.

'That is one of the main accesses that come into the CBD.

'What we are trying to explain, and at the Environment Court hearings as well, is it's not so much the direct impact on the city, it's the stopping of access coming to it.

'When you have 1500 cars travelling along that road every hour for that 15 week period, that will limit the amount of access into the city.

'It's more the flow-on effects that it has.

'It will affect the 61 businesses that are directly affected from the construction, but the flow-on effect to the city by the reduction of access for the public will be severe.”

The shortest construction period to lay the pipeline from Memorial Park to the top of Devonport Road is 15 weeks. The longer it takes the worse the effects will be.

The study finds the main parameters are: the percentage of the CBD affected; 30 per cent, 40 per cent, or 50 per cent; the time that the construction will take on Devonport Road three, four or five months, and the percentage of revenue lost by CBD businesses over this time, 20 per cent, 40 per cent, 60 per cent or 80 per cent.

Some Cameron Road businesses claimed a 75 per cent revenue loss during the 2008 cycleway/water-pipe construction, which stretched out for months longer than forecast.

If the Devonport Road construction extends to five months, it will affect half the CBD businesses with the losses rising to $42.49 million and 634 jobs respectively.

Dr Hughes says the figures are conservative because no losses were estimated for business services sectors such as legal, accounting, marketing and advertising.

The estimated losses are restricted to ‘shops' that rely on foot traffic and parking close-by to their location.

Mainstreet wants a contact person to be available at all times who is able to act upon sources of complaint for construction activities not being carried out in accordance with the approved construction management agreement.

It wants the stages of construction identified and what the work is entailed in each stage and timeframe; the hours of work, days of work and date of construction for this section of the route to be negotiated with Mainstreet Tauranga and its members.

Mainstreet also wants an acoustic engineer to indentify and mitigate noise levels from construction equipment and activities.

It wants vehicle traffic and pedestrian flow management including identifying staged management of the construction process that will result in restrictions being placed upon traffic and pedestrian flow.

Mainstreet wants priority given to night works to allow for the least impact on traffic flows into the area.

The minimum 3.5 month construction period will have a business, social, community and economic impact, says Kirby, who notes it is a long enough period for people to change travel and buying habits.

It will take an enormous amount of advertising and marketing to attract these customers into the city during and well after construction has been completed – and Mainstreet wants council funding to assist with that.

Mainstreet also wants environmental compensation from Tauranga City Council to mitigate the effects of construction upon the business activities in the form of but not limited to a relaxation of parking fees during construction.

Kirby offered to send copies of the report and the relief sought by Mainstreet to all councillors.

The Memorial Park to 1st Ave section is programmed for construction around financial year 2013/14, though that may change in the new Ten Year Plan, which is under discussion.